UK banks need to do more to protect our security in digital age, says new research

Concerned UK citizens believe banks need to go even further in protecting their online security – after digital banking became the norm during the pandemic.

And over a quarter of us reckon our banks do not understand us on a personal level and need to do more to meet our financial needs.

Striking new research reveals UK banks need to go even further to bolster customer trust as we continue to adapt to an ever-increasing digital world.

Over four in ten of us (43 per cent) reckon our banks need to introduce even more advanced cyber-security and data privacy features, with a similar figure (41 per cent) saying security vulnerabilities that could be exploited by hackers is a potential disadvantage of online banking.

Over a quarter of respondents (28 per cent) feel their banks do not understand them personally and would like their banking data to be used to provide the tailored services they desire.

And well over three-quarters (82 per cent) cite data security and privacy as their top priority when using digital banking.

New research by YouGov – conducted on behalf of IBM in June 2021 – reveals the surprising findings and banking technology expert Bharat Bhushan sees it as an opportunity for banks to strengthen their relationships with customers.

Bhushan, CTO Banking & Financial Services, IBM UK & Ireland, said: “Banks already use some of the most advanced technologies in the world to protect their customers and their data online.

“As consumers increasingly use self-service and digital channels, banks need to do more to protect customers against emerging forms of fraud that can deceive even the digitally savvy.

“There is also an opportunity to improve the way banks communicate with their customers as digital banking services become more advanced, to build and maintain trust.

“Regular, clear and actionable insights help customers understand that the bank is doing everything it can to protect them.”

YouGov and IBM’s research also revealed that younger UK citizens are the demographic most concerned about their finances, with under a quarter (22 per cent) of 18 to 24-year-olds saying they were not worried about their money.

And a similarly surprising 26 per cent of 25 to 34-year-olds said the same, with that figure bearing a stark contrast to the healthy 55 per cent of over 55-year-olds who aren’t worried about their cash.

Nearly half of 18 to 24-year-olds (46 per cent) would like more help from their bank in managing their money and planning for the future, well over 50 per cent more than that average of 28 per cent across all age groups.

A transition to artificial intelligence (AI) could be the long-term solution, however, with 54 per cent of 18-24-year-olds and exactly half of 25-34-year-olds saying they’d support the introduction of AI services if it enhanced their customer experience.

Nearly half of all 18 to 34-year-olds surveyed would support the introduction of a text-based messaging service and Bhushan, who believes the banking sector have worked hard to embrace new digital methods throughout the pandemic, added: “We’re seeing a growing appetite for banks to show they understand customers’ unique needs and to help customers manage their finances better.

“At the same time, consumers are also more open to banks delivering this by using emerging technologies such as artificial intelligence, which can provide data-driven insights into customers that inform more tailored services.

“To introduce these new experiences and use cases securely and at scale, more banks are turning to industry-specific cloud-based platforms and technologies that are validated and assured for financial services institutions.”

IBM is the global leader in hybrid cloud and AI, serving clients in more than 170 countries. For more information, visit: www.ibm.com.

Hillingdon Times | News